Japan Intervenes in Yen Markets Ahead of BOJ Decision
The Bank of Japan's (BOJ) policy decision on Friday was preceded by an intervention in New York markets, where Japan conducted yen-buying and dollar-selling market operations to prop up its currency. The move came as the Japanese yen had fallen to four-decade lows against the US dollar.
According to a market source, the intervention occurred on Thursday, with the yen buying and dollar selling activities aimed at stemming the yen's decline. This move was seen ahead of the BOJ's policy decision, where the central bank is expected to keep interest rates steady at 1%, but signal its readiness to continue pushing up borrowing costs.
US Treasury Secretary Scott Bessent noted that Japan may have intervened to prop up its yen currency, describing it as 'very undervalued'.